The role of private bankers and wealth managers needs to be optimised amid a scarcity of talent and as the wealth industry undergoes large-scale transformation, according to Jeffrey Yap, Managing Director, Regional Head of Wealth Management at Hong Leong Bank.
Speaking at the Global Private Banker Summit 2025 held on 4 June in Singapore, Yap said the wealth management industry is going through a “transformational change”, driven by changes in client expectations and talent pool, and due to the advent of technology.
This means high and ultra-high net worth clients are no longer looking for advice on what the “next best trade” is. Rather, they are looking for specific solutions and advice for their unique problems.
“What they want [relationship managers] to do is solve their issue,” he said during a fireside chat. “I have three generations of family members I need to take care of. I have multiple businesses and multiple assets around the world. How do I structure it? What is the best solution? Where should I keep my assets – in Dubai or in Singapore? That is the role of the private banker now.”
As wealth clients in Asia and globally seek specialist advice, the need to hire solid relationship managers has become even more critical. But private banks are faced with a shortage of talent, particularly in the front office and technology teams.
Yap said banks need to “optimise what the RM is going to do” for clients, as well as equip bankers – through hands-on training – with the knowledge and experience they need to service wealth clients.
It doesn’t help that Asia is diverse, with clients coming from different markets, speaking different languages and having different needs.
“The ability to make your resource fungible is also difficult in Asia, so hopefully AI can augment some of those concerns,” said Yap.
Malaysia in wealth limelight
Despite the challenges, the wealth potential in Asia is vast. Hong Kong and Singapore are among the world’s major wealth booking centres. Their pace of growth is only going to accelerate given Asia houses 60% of the world’s population, including a rising middle-income population.
Yap said Singapore in particular is expected to outgrow other booking centres as it is “sheltered from geopolitical concerns” and serves as a vital bridge between the East and the West.
Equally important would be to build a roadmap and strategy for more domestic wealth management centres to flourish. A good example would be Malaysia, where there is increasing demand among high and ultra-high net worth clients for access to global solutions, global advice and global investment products.
The recent unveiling of the Johor-Singapore Special Economic Zone and the Forest City Special Financial Zone in Malaysia is set to attract more high-value investors to Malaysia. Incentives around the establishment of family offices in Forest City, as well as lower capital thresholds than in hubs like Singapore and Hong Kong, adds to its appeal.
Yap pointed out that the liberalisation of Malaysia’s capital markets, combined with an inflow of foreign capital, has made the country an attractive wealth destination.
Thanks to that, domestic private banks are increasingly focusing on wealth management less from a transactional point of view and more from an advisory perspective to meet clients’ complex needs.
“The advisory part is really picking up and that’s a really exciting transformational change [for Malaysia],” added Yap.
By Rashmi Kumar
